Here’s what South Africans should do with 10k 
Where should I save R10 000 in South Africa?

Whether it was a 13th cheque, some extreme budgeting, or possibly that you just have a bit of extra cash lying around – either way, it’s probably best to decide what to do with this money sooner rather than later. Let’s say you’ve ended up with R10 000, and now need to decide how to save this money and where the best place would be to save it (and no under your mattress is not an option). It’s our goal to make sure you are well-informed about your options so that you can make the best decision suited to your needs.  

As with any savings plan, you first need to understand what the reason behind saving is, and how long you want to save for. For example, you could be saving towards your wedding happening in a year’s time, or you could be saving for the long term to buy a house in 10 years’ time and you want a place you can constantly contribute towards. Before we go down the route of explaining your saving and investment options, let’s understand both terms a bit better. 

What’s the difference between saving and investing? 

Saving refers to setting aside money in a low-risk, liquid account, such as a savings account, for short-term goals or emergencies. Investing, on the other hand, involves putting money into assets such as stocks, bonds, or real estate with the expectation of earning a return through capital appreciation or income. Investing generally carries more risk than saving, but also has the potential for higher returns. The main difference between the two is the level of risk and the time horizon for the money. Saving is for short-term goals and investing is for long-term goals. 

There are however low-risk investment accounts where you can save money, and we will explain this later on.  

As a South African what should I do with 10k?  

South Africans have endless options when it comes to secure, interest baring accounts and investment accounts. Before we give you all the options available, it’s best to take note that we are by no means, financial advisors. Most of our insights have come from doing thorough research on all your options as well as engaging in communities like The Fat Wallet Community.  

If you’re looking to grow your money over the long term, you’ll want to find investment opportunities that offer great returns while minimizing risk. There are a variety of options out there, so it’s important to do your research and figure out what’s best for you. Often, the simplest solution is to set up a debit order from your current account into a separate savings or notice account. This offers a low level of risk but generally doesn’t earn much in terms of return. If you’re willing to take on a bit more risk, you could look into other options that have the potential to earn higher returns. Whatever you decide, be sure to think carefully about the risks and rewards before making any decisions. 

Here are 5 things you could do with R10 000 in South Africa 

1. Reduce your debt first 

Before you even start going down the saving and investment journey, the first item to check off is reducing your debt as much as possible. South Africans often find themselves in crippling debt, and this is not smart if you are wanting to save for the short or long term. First have a look at all your current debt, and then reduce the amount of interest you pay on outstanding debts. Additionally, paying off high-interest debt, such as credit card debt, can help improve your credit score and financial stability. Additionally, it can also help you to have a peace of mind as it will lower your debt to income ratio which is important for future loan applications.  

2. High-interest savings account 

Again, as we said we can’t give you our advice, but we can tell you what other South Africans and financial experts would recommend. According to Rateweb, the top 5 savings accounts in South Africa are: 

  1. ABSA TruSave 
  1. African Bank MyWorld Account 
  1. Capitec Fixed Term Savings 
  1. FNB Savings Account 
  1. Investec Prime Saver  

These accounts were chosen because they offer great interest rates. A high-interest savings account is a type of account that typically offers a higher interest rate than a traditional savings account. A savings account is a short- to medium-term savings option, with a much lower risk. It offers this low risk because the capital you’ve invested/saved stays in the account and slowly earns interest. 

*Side note: some of these accounts require a minimum deposit so make sure beforehand that they’ll take your R10 000 initial deposit.  

3. Fixed deposit account 

Technically this forms part of Point 2, but we thought we’d elaborate a bit more on your options here. Although similar to a high-interest savings account, with a fixed deposit account your money will be invested for a much longer term and often offers a higher interest rate. With a fixed deposit account, the depositor agrees to leave their money in the account for a set period of time, usually ranging from a few months to a few years. In return, the bank agrees to pay a higher interest rate on the deposit. This option is also considered low-risk because the returns are guaranteed. Again our friends at Rateweb have rounded up the best options available in South Africa right now. Since you’ve only got R10 000 in spare change your best fixed deposit options are:  

  1. SA retail bonds 
  1. African Bank  

4. Unit trust 

This option is far more on the investment side than your regular savings account options. A unit trust is a way to invest in a diversified portfolio of assets, such as stocks, bonds, and property. Unit trusts are professionally managed, and investors can choose from a range of funds that suit their risk tolerance and financial goals. The returns on unit trusts can be higher than a savings account, but they are also subject to market fluctuations, which means there is a higher level of risk involved, however, it is a much lower risk than outright buying shares. If you need a bit of guidance on what unit trusts are available in South Africa, read Briefly’s summary.  

5. Shares or exchange-traded funds (ETFs) 

Shares and ETFs are a way to invest directly in the stock market. This option has the potential for higher returns than a savings account or unit trust, but also comes with a higher level of risk. The value of individual shares and ETFs can fluctuate based on a variety of factors, including the performance of the underlying companies and overall market conditions. There are loads of different opinions on shares and ETFs, platforms like Easy Equities allow consumers to buy and invest shares and ETFs all in one place. Plus the platform is pretty easy to navigate and understand. If you are still unsure what the best shares and ETFs are to be investing in, we’d suggest doing thorough research online.  

Now that we’ve given you the complete lowdown on what to do with R10 000 all that’s left do is to get started on this game plan. Although these are some great tips, it’s also important to consult a financial advisor before making any investment decisions because a financial advisor can help you to understand your financial goals and risk tolerance, and can provide guidance on the best investment options for you. They can also help you to understand the potential risks and rewards of different investment options and can provide ongoing support as your financial situation and goals change over time. 

P.S. if you don’t have R10 000, and only have R1000 spare each month, then IOL has given a few ideas on what to do with this extra moola.  


If you’ve tried everything to get your credit health back in track with no luck, there is still light at the end of the tunnel – our credit health course. Get all the tips & tricks you need to take charge of your financial health.  

Credit Health Course Fincheck Academy

Information was updated in 2023


Article at a glance

Not sure what to do with R10 000 in spare cash? Discover the smartest ways to invest and save your money in South Africa with a few helpful tips & tricks.

Related Articles